Apple Hospitality REIT Sells Nine Hotels for $95 Million

RICHMOND, Va.—Apple Hospitality REIT recently announced that it completed a nine-hotel portfolio sale for a total sales price of $95 million on March 28, 2019. The company used the sale proceeds to reduce the outstanding balance of its revolving credit facility and anticipates recognizing a gain on the sale in the first quarter of 2019.

“We are pleased to have completed the sale of this portfolio,” said Nelson Knight, executive vice president and chief investment officer of Apple Hospitality. “Through these attractively priced transactions, we adjusted our market exposure in ways that we feel will further enhance the strength and stability of our hospitality platform.”

For the trailing 12 months ended February 28, 2019, the portfolio had net income of approximately $5.4 million, Hotel EBITDA Margin of 31.1 percent and Hotel EBITDA of $9.5 million. Based on these trailing 12 months results, the sales price of $95 million resulted in a capitalization rate of approximately 7.3 percent including an estimated approximate $18.1 million brand property improvement plan required to be completed by the buyer, or a Hotel EBITDA multiple of 11.9 times.

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here